For numerous businesses, the telephone serves as the quintessential selling tool. Companies that advertise aim to encourage customers to pick up the phone and inquire about a product or service. They often concentrate on crafting exceptional advertisements specifically designed to prompt customers to call, likely costing thousands of dollars to create, develop, and publish. If successful, the phones are inundated with enquiries. Nevertheless, this is where the system may falter. Receiving a prospective customer’s call is not the ultimate goal; making the sale is. Yet, the majority of the effort is expended on generating enquiries. A robust selling system, whether it is telephone or face-to-face selling, must not stop at securing an enquiry. It should seize that opportunity and convert it into a sale. A significant portion of the money currently spent on advertising for new customers might be conserved if more enquiries could be transformed into sales.

Let us examine how this can be achieved – that is, increasing the conversion rate of calls to sales. Bear in mind, when people contact you to inquire about your product or service, they are only one step away from purchasing. However, it can be assured that in most cases, they are not only calling you, but also your competitors. If they call four competitors, you might assume that you will secure one in five sales. However, if they call nine others, then it would be one in ten. Do not settle for that average; it is simply insufficient.

How can you ensure that these customers choose to purchase from you? By offering the lowest price? That is the least desirable option, as you will consistently lose sales on price and attract the worst customers – price shoppers. Conversely, it is possible to elevate your conversion rate merely by distinguishing yourself from competitors and providing prospective customers precisely what they desire in a manner your competitors do not. This will guarantee that the customer has no other option but to purchase from you.

Let us explore precisely how this can be done: how you can double, triple, or even quadruple your chances of converting each enquiry into a sale, thereby increasing your sales. Firstly, evaluate how you manage sales enquiries.

What occurs when a prospective customer contacts you? Are these customers kept on hold? If so, consider the impact: what are they listening to? Bells, chimes, or the radio (potentially featuring an advertisement for your competitor)? You should provide a message about your company, the services you offer, your guarantees, current special offers, and an overview of the alternative products or services available to them. Ensure your salespeople are well-versed in the offers mentioned in the recording.

The initial few seconds a potential customer spends on the phone with you and your company are crucial. Your telephone can be considered your ‘shop window’, and you can choose to adorn it attractively, making potential customers feel valued, or deliver a mediocre performance and repel them. Their impressions may be formed within the first four seconds; hence, invest time in ensuring they are captivated.

Next, consider the potential for increasing sales. Over the following week, organise for you and each of your employees who handle sales phone calls to participate in an exercise. It is vital to inform them that the goal of this exercise is to identify the potential for growth in this area of your business.

Instruct each participant to record every call they receive and categorise it. Note whether it is from a new or existing customer, a new call or a callback, and whether the customer enquires, purchases, or merely enquires. Now, calculate your conversion rate by comparing all the week’s enquiries against all the sales. Count callbacks as a single enquiry. Do not count the original call and the callback as two separate enquiries, but do count the resultant sale as a sale. Finally, compile a list of each individual’s conversion

What would transpire if everyone in the organisation were able to replicate this success? Could you potentially double or triple your results? Document the actions taken by this salesperson each time they successfully handle an enquiry and close the sale, capturing everything they do. This process will become the Telephone Sales System for your business.

Next, you must ensure that everyone in your organisation is both willing and eager to adopt this system. This might prove to be the most challenging aspect, but there are methods to facilitate its implementation. Most salespeople assume that they will not convert every enquiry into a sale, but this mindset should be altered. It is crucial to educate your sales team to understand that customers purchase from companies that demonstrate their ability to solve immediate problems while providing a pleasurable buying experience.

This approach is particularly effective if your competitors provide prices over the phone, which many of them likely do. Refrain from disclosing prices over the phone. If a prospective customer calls you and requests the price of your product, it is probable that they are also contacting your competitors for the same information. If you only provide the product price over the phone and your competitors do likewise, the customer will have no other basis for their purchasing decision. More often than not, they will choose the cheaper supplier because there is no perceived difference in any other aspect of the service.

Next, you must ensure that this sales system encompasses all aspects of your goods and services, adding value in some manner that justifies the price to a prospective purchaser. You may already be doing this, as many promising businesses add significant value to the goods or services they sell. Re-examine the ways in which you currently or could potentially add value to the products or services you offer.

Here are some examples. One client who manufactures and sells garden ornaments stocks their customers’ stores on consignment, conducts stocktakes on their behalf, and refills and merchandises their shelves. A builder conducts spot checks and holds periodic meetings with clients to update them on the progress of the work, explains the various stages, and ensures their satisfaction. Another business makes their products easily accessible to clients. A nursery and gift store offer complimentary landscaping services for clients who wish to landscape or redesign their gardens. What are you doing, beyond the norm, that you can inform prospects about and set you apart from your competitors? Compile a list of the actions you are currently undertaking or could potentially implement and encourage your employees to contribute their ideas; they are likely to generate some excellent suggestions.

Now that you have identified how you add value, let us examine how to address enquiries. The first query a potential customer will pose typically pertains to price. How do you respond to this question? Most businesses simply provide the customer with the price they desire. In this situation, as the customer, you would most likely say, ‘Well, thank you for that; I will probably get back to you later in the day.’ In reality, there is only one instance in which the customer will call back, and that is if you offer the lowest price. Why? Because the customer has been converted into a price shopper.

The initial few seconds a potential customer spends on the phone with you and your company are crucial. Your telephone can be likened to your ‘shop window’, and you can choose to make it appealing and ensure potential customers feel special, or you can provide a mediocre experience and repel them. Their impressions may be formed within the first four seconds; therefore, invest time in making certain they are captivated.

Next, consider the potential for increasing sales. Over the following week, arrange for you and each of your employees who handle sales phone calls to participate in an exercise. It is essential to inform them that the goal of this exercise is to identify the potential for growth in this area of your business.

Instruct each participant how ought you to handle the same enquiry, using the opportunity to sell to your customer based on the quality, value, and service your business offers? Firstly, express gratitude to the customer for contacting your business. Next, ascertain the customer’s requirements to ensure you can address their problem effectively.

For instance, does a prospective traveller have a specific destination in mind? Have they chosen a particular time of year? Are they aware of other similar destinations that might better suit their preferences? Do they wish to fly or take a cruise? Numerous questions must be posed before you can discern the customer’s true desires.

Bear in mind that the information customers provide during their enquiries offers clues to help you sell to them. For example, if someone requests a brochure and prices for holidays to Fiji, what can you deduce? It is evident that the individual is interested in a trip, potentially to Fiji but not necessarily. They might be seeking a sunny holiday but are unsure how to request information about alternative destinations. In this case, sending them a brochure and price list may be counterproductive.

Instead, determine the customer’s desires. How long do they wish to travel for, and what is the purpose of their trip? You must ask numerous questions to identify the customer’s genuine needs and ascertain how best to ‘solve their problem’. Both you and the customer are disadvantaged if you fail to pose these questions. In every instance, inquire thoroughly to pinpoint the customer’s requirements. Most prospects are not solely focused on price; they typically struggle to initiate the conversation.

When a caller requests a price and you provide it, you are effectively stating, ‘the reason to purchase this is due to the price!’ Consequently, the caller searches for a better offer. Although price is a factor, it is not the sole consideration; however, by offering prices over the phone, you are persuading the caller that it is the primary determinant. Focusing exclusively on the product can be similarly detrimental. Entering ‘product peddling mode’ does not assist the client in resolving their problem. This occurs when the salesperson rapidly lists features, benefits, products, etc., which confuses customers and renders decision-making exceedingly challenging. Since their genuine needs remain unaddressed, they are inclined to say, ‘Oh, thank you, I’ll call you back later.’

This transpires not because you or your salespeople lack product knowledge; rather, they may be too familiar with the product. Instead, strive to become a ‘problem solver’. A problem solver recognises the importance of listening to customers’ needs throughout the selling process. They understand that demonstrating genuine concern for the caller and, as a direct consequence, asking numerous questions are vital components of the entire selling process.

It is crucial to acknowledge that your customers and potential customers have choices. Thus, why should they opt for your business?

 

The Steps

The stages involved in establishing a relationship with the customer during the initial enquiry call are as follows: